CARBON INSETS:
accelerating net zero transport
What are Carbon insets?
Carbon Insetting is a methodology allowing a company to make an investment directly within its eco-system in order to reduce its carbon footprint. Carbon Insets represent (externally) verified CO2e reductions derived from that investments to ensure that the full benefits of the investments are allocated to the investing company.
Carbon insets in Transport
Transport accounts for a substantial and growing part of the emissions throughout supply chains. Carbon insets allow companies to invest in low carbon initiatives (eg sustainable fuel, zero emission fleet) in the most impactful place of its supply chain, while still being able to take full benefit from the CO2-reductions.
Carbon insets explained
Recent publication
White paper Smart Freight Center: “Carbon Insets for the Logistics Sector“
“There is an opportunity to channel carbon offset funds related to transportation emissions to projects within the logistics sector – a practice known as carbon insetting.”
Suzanne Greene, Smart Freight Centre’s Expert advisor
Can carbon insets be used to achieve Net Zero goals?
Science Based Target initiative (SBTi): “There is no international standard or consistent definition to describe insetting projects nor an agreed methodology to account for their GHG emission reductions. Further work needs to be done to standardize the definition of insetting projects and to develop a clear accounting methodology. For these reasons, the SBTi will be open to consider these projects as a way to achieve SBTs under certain circumstances. Insetting projects could potentially count as long as the emissions they address are within the Scope 3 emissions boundary of the company and as long as there is no double counting (i.e. the impact of the project it is not being counted by another company – other than the one developing the insetting project and the company taking into account the insetting reductions for Scope 3 purposes).” (source: www.insettingplatform.com)
Market insetting initiatives
“Skicka Grönt”-program
Customers using the program pay a fixed surcharge for every parcel or pallet shipped and the income generated from these surcharges is fully invested in clean technologies within the Swedish transport network.
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ACT with CMA CGM plus
CMA CGM developed their “ACT with CM CGM+”-program to provide their customers with value-added services designed to analyze, reduce and offset your environmental footprint.
Carbon Insetting and reporting
Based on its GLEC (Global Logistics Emissions Council) framework, Smart Freight Center is looking to develop methods and guidelines for carbon inset accounting and reporting that covers logistics emissions more broadly, and test this with companies.